The UK government has awarded £120m in funding to Ineos, the chemicals company owned by billionaire Jim Ratcliffe, to secure the future of the country's last ethylene plant at Grangemouth. The deal, which includes an additional £30m from Ineos, is expected to safeguard more than 500 jobs at the site in central Scotland.
Prime Minister Keir Starmer said the investment demonstrated the government's commitment to backing British industry and protecting jobs. “This is about good jobs, stronger communities, and a modern economy that works for everyone,” he said. Chancellor Rachel Reeves added that the package would “protect our national resilience and secure the livelihoods of hundreds of people employed at the site”.
The ethylene produced at Grangemouth is essential for medical-grade plastics, water treatment, and aerospace and automotive manufacturing. The Department for Business and Trade noted that about 40% of Europe's ethylene production capacity has either shut down or is at risk.
The funding comes amid political pressure on both the UK and Scottish governments over job losses in the region. Earlier this year, Ineos closed an oil refinery at Grangemouth, and ExxonMobil announced the closure of its ethylene plant in Fife next February, with the loss of 429 jobs. The UK government declined to invest in the Fife site, citing a lack of competitive future.
Jim Ratcliffe, who has a minority stake in Manchester United and is worth $14.7bn, said the government support “protects 500 high-value jobs, secures supply chains and preserves the industrial capability the nation needs”. The announcement follows nearly £10m in funding last week for two low-carbon chemical plants at Grangemouth, expected to create up to 310 jobs by 2030.
Meanwhile, Ineos is planning hundreds of job cuts globally, including 60 at its Hull chemicals site and further reductions at Ineos Automotive, blaming high energy costs and cheap imports from China. The company has accused Europe of “industrial suicide” through green policies that raise energy costs.
